Scribd Banks $3.5 Million from Redpoint

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Scribd, dubbed the “YouTube for Documents,” was the dark horse of their Y Combinator class, but the social document site now gives its critics pause to think.

Since launching, traffic to the site scaled quickly to 75-100,000 uniques per day with a little help from popular link aggregation sites like Digg. This past month they logged 1.73 million unique visitors.

The site gets about 1,000 new documents each day and recently launched a Facebook application, which has been added by nearly 11,000 users.

The company cites an early $40,000 convertible note from Kinsey Hills Group as getting them off the ground. Today Kinsey Hills is back, investing another $210,000 alongside $3.5 million from Redpoint, with Geoffrey Yang joining the company’s board. Sources close to the deal peg the post money valuation at $17.5 million under competitive bidding, counter to earlier financing rumors.

Scribd’s most immediate plan for the money is to expand their programming team.

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OverviewScribd is the premier subscription reading service with more than 500,000 titles, including New York Times bestsellers, classics, and reader favorites in every genre.
A pioneer of the all-you-can-read model, Scribd's subscriptions service allows readers to have unlimited access to more than 500,000 books from nearly 1,000 publishers, including Harper Collins, Simon & Schuster, Open Road Media, …